Hobart stadium business case

[Mr Tassie]

I'm just interested to know if people believe the business case for the Hobart stadium is a strong one or do you believe it's a bad deal with too many risks?

 

[kreuze_missile]

I have a PhD in Businessology and I think it's really good

 

[Mr Tassie]

I have a PhD in Businessology and I think it's really good

So what to you think about how the stadium will run at a loss?

 

[catstorm]

Business case is build stadium get an AFL team don’t build stadium don’t get an AFL team.

Everyone will be fine no matter which decision Tasmania takes.

 

[Mr Tassie]

Business case is build stadium get an AFL team don’t build stadium don’t get an AFL team.

Everyone will be fine no matter which decision Tasmania takes.

But isn't this just building at all costs?...i support a stadium if the Projects of State Significance recommend it for approval,but can you honestly see it passing it when it is expected to run at a loss?

 

[kreuze_missile]

So what to you think about how the stadium will run at a loss?

What loss?

PwC has assessed that the new stadium will inject $300 million into the Tasmanian economy during construction. Once built, the stadium will generate $85 million in additional economic activity and 950 jobs in each year of operations. This is in addition to the $120 million forecast to be generated by Tasmania’s own AFL and AFLW team per annum.

Macquarie Point Stadium is estimated to attract up to 420,000 attendees each year, contributing $162 million in indirect expenditure annually.

The new stadium in Hobart is estimated to contribute $85 million directly and indirectly in gross state product annually or $2.2 billion over 25 years.

PwC has also analysed the economic impact that would be generated by commercial land in the precinct, outside the stadium development. Commercial activity from developments in the 3 hectares available could generate up to a further 6,720 jobs and $6.4 million in revenue during operations, excluding construction benefits. This includes provision for an Antarctic SciencePrecinct and a dedicated space for community and cultural development.

 

[Mr Tassie]

What loss?

PwC has assessed that the new stadium will inject $300 million into the Tasmanian economy during construction. Once built, the stadium will generate $85 million in additional economic activity and 950 jobs in each year of operations. This is in addition to the $120 million forecast to be generated by Tasmania’s own AFL and AFLW team per annum.

Macquarie Point Stadium is estimated to attract up to 420,000 attendees each year, contributing $162 million in indirect expenditure annually.

The new stadium in Hobart is estimated to contribute $85 million directly and indirectly in gross state product annually or $2.2 billion over 25 years.

PwC has also analysed the economic impact that would be generated by commercial land in the precinct, outside the stadium development. Commercial activity from developments in the 3 hectares available could generate up to a further 6,720 jobs and $6.4 million in revenue during operations, excluding construction benefits. This includes provision for an Antarctic SciencePrecinct and a dedicated space for community and cultural development.

The stadium has a BCR rating of 0.69 which means it won't beak even and if the stadium blows our like many believe,then these figures are no longer correct. The other thing to remember is this is based on a lot of events that are not even likely to be played in Hobart like a yearly test match and Matilda games. So in other words a lot of it is just wishful thinking and like I said I support a stadium but it can't be at all costs in a state that’s struggling financially.